The Kanto scrap export tender in Japan has closed with lower price levels month on month against the backdrop of low demand. Asian buyers are still cautious, citing lower demand for steel in the region. A Japanese source said, “I do not think this is the bottom. International steel demand is nowhere to be seen and expecting a further drop makes more sense to me.”
The Kanto tender average price was at JPY 46,173/mt ($341/mt) FAS, down by JPY 4,383/mt, with dollar-based quotations declining by $39/mt from April. A total of 20,500 mt of scrap was booked. 15,000 mt of the volume will be shipped to Bangladesh, while the rest will go to South Korea or Taiwan.
The Kanto tender FAS prices translate to JPY 47.173/mt ($349/mt) FOB. South Korean producer Hyundai Steel is expected to share its bids for Japanese H2 scrap late today CET time.
However, the Kanto price is lower than the range of domestic Tokyo Bay FAS prices. On May 9, Tokyo Bay FAS-based prices for H2 grade scrap were at JPY 48,000-49,500/mt ($355-366/mt) FOB. Meanwhile, HS grades are standing at JPY 51,000-52,500/mt ($377-388/mt) FAS, and shindachi grades are at JPY 50,000-51,000/mt ($369-377/mt) FAS.
Following the Kanto tender, Tokyo Steel’s general range for H2 grade scrap has moved down to JPY 45,000-47,500/mt ($333-351/mt), depending on the mill. The dollar-based prices have decreased by $21-22/mt compared to the previous levels seen on April 24.
$1 = JPY 135.35